UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 40531 / October 8, 1998
ADMINISTRATIVE PROCEEDING
File No. 3-9757
_______________________________
:
In the Matter of : ORDER INSTITUTING PUBLIC
: PROCEEDINGS, MAKING FINDINGS
MATTHEW THOMAS BURGASON : AND IMPOSING REMEDIAL
: SANCTIONS PURSUANT TO SECTIONS
: 15(b) AND 19(h) OF THE SECURITIES
: EXCHANGE ACT OF 1934
_______________________________:
I.
The Securities and Exchange Commission ("Commission")
deems it appropriate and in the public interest that
administrative proceedings be instituted pursuant to
Sections 15(b) and 19(h) of the Securities Exchange Act of
1934 ("Exchange Act") against Matthew Thomas Burgason
("Burgason"), formerly a registered representative
associated with broker-dealers registered with the
Commission.
In anticipation of the institution of these
administrative proceedings, Burgason has submitted an Offer
of Settlement that the Commission has determined to accept.
Solely for the purpose of these proceedings and any other
proceedings brought by or on behalf of the Commission or to
which the Commission is a party, and without admitting or
denying the findings set forth herein, except that Burgason
admits the Commission's jurisdiction over him and over the
subject matter of these proceedings, and admits the findings
set forth in Subparagraphs II.A. and II.D. below, Burgason
consents to the entry of this Order Instituting Public
Proceedings, Making Findings and Imposing Remedial Sanctions
Pursuant to Sections 15(b) and 19(h) of the Securities
Exchange Act of 1934 ("Order") and to the imposition of the
remedial sanctions set forth below. The Commission has
determined that it is appropriate and in the public interest
to accept Burgason's Offer of Settlement.
II.
On the basis of this Order, and the Offer of Settlement
submitted by Burgason, the Commission finds that:
A. Between October 1986 until August 1995, Burgason
was a registered representative associated with
broker-dealers registered with the Commission.
B. During the period from in or about July 1992
through August 25, 1995, Burgason willfully
violated Section 17(a) of the Securities Act of
1933 ("Securities Act") and Section 10(b) of the
Exchange Act and Rule l0b-5 thereunder, in
connection with the offer, purchase and sale of
certain securities, in that he, directly and
indirectly, by use of the mails and the means and
instruments of transportation and communication in
interstate commerce, and the means and
instrumentalities of interstate commerce; employed
devices, schemes and artifices to defraud;
obtained money and property by means of, and made
untrue statements of material facts and omitted to
state material facts necessary to make the
statements made, in light of the circumstances
under which they were made, not misleading; and
engaged in transactions, acts, practices and
courses of business which would and did operate as
a fraud and deceit upon the purchasers of said
securities and other persons.
C. As part of the aforesaid conduct, Burgason
misappropriated approximately $524,632 in funds
from seventeen customers between July 1992 and
August 1995. Burgason made false and misleading
statements to his brokerage clients that funds
tendered to Burgason for investment would be
placed into a variable annuity program, rare coin
investment program, or real estate loan program.
Burgason misappropriated customer funds by
depositing them into his personal account or
accounts he controlled in the name of fictitious
entities. Burgason then converted the funds and
used them to pay personal expenses. To conceal
his fraud, Burgason provided customers with
falsified account statements and verbal assurances
that their money had been invested legitimately.
D. Based on the conduct described above, on February
28, 1997, Burgason pled guilty to fraudulent
schemes and artifices in violation of Arizona
Revised Statutes ("A.R.S.") 13-2310, 13-701,
13-702, 13-801, 13-2313, 13-2314 (class 2 felony)
and also pled guilty to theft in violation of
A.R.S. 13-801, 13-802(A)(2), 13-701, 13-801,
13-2313 and 13-2314 (class 2 felony). State of
Arizona v. Matthew T. Burgason Criminal No. CR97-
01850. On May 2, 1997, Burgason was sentenced to
three years imprisonment and ordered to pay
restitution of $678,645.28.
III.
On the basis of the foregoing, the Commission deems it
appropriate and in the public interest to impose the
sanctions specified in the Offer of Settlement submitted by
Burgason.
Accordingly, IT IS HEREBY ORDERED that Burgason be, and
hereby is:
Barred from association with any broker, dealer,
municipal securities dealer, investment adviser or
investment company.
By the Commission.
Jonathan G. Katz
Secretary